You heard me and you heard me correctly.
SoFi ($SOFI) is up almost 100% in the past month with the debt ceiling bill passed. Why? The deal worked out between House Speaker Kevin McCarthy and President Joe Biden calls for an end to the freeze on payments by August 29. That freeze was enacted three years ago in response to the financial pressures caused by the COVID-19 pandemic, giving a break to more than 40 million borrowers. The moratorium was extended several times since then. The pause hurt SoFi because it eliminated a key attraction of private student loan refinancing: lower interest rates over longer pay periods. As a result, SoFi’s student loan volume plummeted, falling to $525 million in this year’s first quarter, more than 50% below the average prior to the pandemic.
But with the new deal, this is undone. $SOFI can make money again from student loan. And with more than 20% of the float shorted, people are starting to cover their shorts as well. The result: 100% increase in share prices the last month.
Not only that, one analyst recently raised PT from $8 to $11, which I think is still low and I think more will come even from those a-holes from Bank of America and Wedbush.
In my opinion, I think it will go above $12 and even $15. So load them up before it’s too late.
And again, do your DD before making any investment decisions.